Recurring Deposit Calculator
Calculate maturity amount for your recurring deposit investments
Popular RD Plans
Total Deposits
Interest Earned
Investment Breakdown
RD Summary
Year-wise Growth Projection
What is Recurring Deposit (RD)?
A Recurring Deposit (RD) is a term deposit offered by banks where you can deposit a fixed amount every month for a predetermined period. RD combines the flexibility of a savings account with the higher interest rates of a fixed deposit.
Benefits of RD:
- Disciplined Savings: Encourages regular savings habit
- Higher Interest: Better returns than savings account
- Flexible Amount: Can start with as low as ₹100 per month
- Fixed Tenure: Maturity period ranges from 6 months to 10 years
- Loan Facility: Can get loan up to 90% of deposit amount
- Tax Benefits: Interest earned up to ₹10,000 is tax-free for senior citizens
RD Calculation Formula:
The RD maturity amount is calculated using compound interest:
Where: M = Maturity Amount, R = Monthly Deposit, r = Monthly Interest Rate, n = Number of Months
Frequently Asked Questions
What is the minimum amount required to open an RD account?
Most banks allow RD accounts to be opened with a minimum monthly deposit of ₹100 to ₹500, making it accessible for all income groups.
Can I withdraw money from RD before maturity?
Yes, but premature withdrawal usually attracts a penalty of 1% on the interest rate, and you may lose some interest earnings.
What happens if I miss an RD installment?
Banks typically charge a penalty for missed installments. After 3-6 consecutive defaults, the account may be closed or converted to a fixed deposit.
Is the interest on RD taxable?
Yes, interest earned on RD is taxable as per your income tax slab. However, senior citizens get tax exemption up to ₹10,000 annually.
Can I get a loan against my RD?
Yes, most banks offer loans up to 90-95% of the RD value. The interest rate is usually 1-2% higher than the RD interest rate.